Local Incentives and Electric Vehicle Adoption

Askill Halse, Karen E. Hauge, Elisabeth T. Isaksen, Bjørn G. Johansen and Oddbjørn Raaum

Journal of the Association of Environmental and Resource Economists, 2025, vol. 12, issue 1, 145 - 180

Abstract: We study how the adoption of battery electric vehicles—a key technology for decarbonizing transportation—responds to two local incentives: road toll exemption and bus lane access. Combining rich Norwegian microdata with a quasi-experimental research design where we exploit household-level variations in incentives on work commutes, we find sizable and positive effects on electric vehicle ownership. The increase in electric vehicles from having road tolls and bus lanes on work commutes is, on average, offset by a similar decline in the ownership of conventional vehicles. Still, road toll exposure increases total car ownership among the richest households. Road tolls also reduce “brown” driving per vehicle, but lower CO2 emissions are largely due to the reduction in the number of conventional vehicles.

Date: 2025
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Working Paper: Local Incentives and Electric Vehicle Adoption (2022)
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